Stocks the gang might try and get going
Kevin Haggerty is
the former head of trading for Fidelity Capital Markets. His column is
intended for more advanced traders. Kevin has trained thousands of traders
over the past decade. If you would like to be trained by him,
ext. 1.
There are ten trading
days left in 2005, with the SPX +4.9% year-to-date and the
Generals/hedge funds bent to push it higher into year end after a day or two of
weakness after today’s op expiration trading. Volume will get lighter into the
holiday which means liquidity is thinner and that enables price to be moved very
easily. The SPX was off less than two points Thursday, to 1270.94, yet the
internals were weaker, with the volume ratio 41 and breadth -881 on NYSE volume
of 1.61 billion shares. The Dow was flat and the QQQQ +0.2% to 41.97. However,
as of 6:30 a.m. this morning the green lights are on in the casino with the Dow
futures +40, S&P +5.20 and Nasdaq +6. Expiration is usually a day for daytraders
to back off, as the price action can be erratic, but if the futures force a
premium open, the initial trades will be
Trap Doors from the short side.
The Dow, which finished at 10,881, is probably a lock into year-end to take out
the 10,960 magnet high and then 11,000, which will have the media empty suits
hyping the market big-time. The SPX reachable measured target zone is 1305 –
1307 then 1323 – 1328. This is outlined in the
Inner Circle. There are some Dow stocks like
(
XOM |
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PowerRating),
(
AA |
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PowerRating),
(
DD |
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PowerRating),
(
C |
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PowerRating),
and
(
GE |
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PowerRating) in contracted volatility patterns the gang might try to get going in
addition to stocks at or just below their highs, like like
(
CAT |
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PowerRating) and
(
HPQ |
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PowerRating).
(
MMM |
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PowerRating) has retraced to its breakout zone just above the 200-day EMA and I
expect the gang to get that moving also. Healthcare focus list stocks like UNH
and PHS will get marked up from their current narrow-range patterns, and in the
brokers,
(
MER |
Quote |
Chart |
News |
PowerRating) is also vulnerable to new highs by the gang from its current
pattern.
As I finish this commentary at 7 a.m. the
futures are more green, with the S&Ps +6.40, Dow +48 and Nasdaq +7.50, so it
will definitely be Trap Doors in the first 30 minutes. This of you who know my
strategies should remain cognizant of the 90%-60% Rule.
Have a good trading day,
Kevin Haggerty
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